Still falling. Now below support of 120p . How much further will this fall i wonder ? |
Looks very close to the 120p support now. It has certainly fallen along way this year so far in a sector that was supposed to do well ! |
Retail_Rights: you make a very good point. It reads like they are preparing the groundwork in case they miss their numbers. Same I saw on RBGP who missed targets because M&A Advisory deals didn’t complete. My reading is that the M&A market is now very challenging.
On the LSE board someone pointed out that there have emerged some strong competitors in their core Administrations area that did not exist before their recent IPO. These came from the Big 4 Accountants spinning off their Insolvency operations because there was too much conflict with their Audit/Tax clients. FRP used to have this area sown up because they are not part of a bigger Accounting Group.
The high valuation has always been my concern with this company. PER is around 28 which assumes total perfection - especially in today’s market!
As ever DYOR of course. |
Trading update just released. Looks like the company is becoming busier (perhaps not a surprise given the current economic climate) which is somewhat promising. However, I am concerned about the following statement: "Based on year-to-date trading, the Board expects to be broadly in line with consensus FY 2023 revenue and adjusted EBITDA(2) expectations(1) , with the outcome subject to the timing of completion of several FRP Corporate Finance transactions around the year end." The indication of being broadly in line with expectations is of course good, but the final sentence means results are highly dependent on some events which may be outside of the company's control. I would advise caution here as to a potential profit warning if timing doesn't work out on some transactions. |
 FRP Advisory Group plc, a leading national specialist business advisory firm, issued a trading update for the HY ended 31 October 2022 this morning. The Group's performance remained strong during the first half, with continued growth in revenues and profits. The Group expects to report revenue for H1 2023 of £49.4m, up 10% on the prior year and underlying adjusted EBITDA of £11.6m, up 5% on the prior year. Both are in line with the Board's expectations to date. The business is growing steadily and remains very profitable for the Professional & Commercial Services sector. The balance sheet is robust with negative net debt, the share price also has positive momentum. Valuation is the main potential cloud for the investment case, forward PE ratio at 20.9x looks unhelpful for the sector. But the share has only traded to a trailing 12-month PE low of 19.2x since listing in 2022, a more enticing PE valuation may not be on offer anytime soon. BUY...
...from WealthOracle
hxxps://wealthoracle.co.uk/detailed-result-full/FRP/614 |
A sad day for Rugby Union today with Wasps going into Administration, but it looks like being very healthy from a fee-income angle for FRP. |
Trending breakout occurred a couple of days ago. AGM news not due until mid-September, so looking like analyst-forecasts of 176 may well be exceeded before that. Unlike BEG and K3C, FRP is making new highs, so no longer-term resistance levels to cause short-term problems. Prior trading-range depth would suggest 185 as a target-price for this trend. |
Looking at corporate distress in the UK at the moment it’s hard to see analyst forecasts not being exceeded for either company. From an insolvency-angle it would seem that FRP are picking up much more profitable, complex work that would traditionally have gone to the Big Four firms, unlike BEG which does lower-value/high-volume liquidation/burials. |
At 18x forward PE (rather than say BEG on about 14) there's a high amount of expectation of over performance versus forecast here. However with a people / capacity driven business model I guess there's a limit on how much you can take on relative to a fixed cost base? Which is a reason why BEG's 14x looks a bit more appropriate. |
Also manolette is a good one with plenty to run |
I’ve reluctantly taken profits here at £1.58 simply on valuation grounds. I reckon this is around 20x forward earnings so back on the watchlist and i’ve added to BEG which is 14x earnings and a 2.5% DY. Will be back here on any minor pullbacks. K3 is getting close to bargain levels too. |
Well worth signing up with insolvency-insider.co.uk for market statistics relating to insolvency appointments... especially if you hold FRP, BEG or K3C. FRP currently moving well ahead of competition in terms of Administration appointments. |
Had these on my watch list for a while. A good investment for hard times ahead is useful to have.
Surprised to get some under the 140p equity issue / large owner sale price, so couldn't resist, in at 138.
Will hold for next few years until I see glimmers of sunlight through these dark clouds!! |
Turnover up 21%, of which 11% is organic.
Personnel costs up 26.2% and other operating costs up 32.7%
Net result is PBT down 9%
The text presents this as if everything is going well, with attempt to explain the problems.
Shareholders might just expect management to show some interest in shareholder returns. |
Topping up time imo |
"The Board of Directors proposed a final dividend of 1.9p per eligible ordinary share for the final quarter to 30 April 2022 (2021: 1.6p)"
They're confused. It was 1.7p last year, 1.6p the year before. |
Significantly undervalued profitable company if anyone cares to browse.
PPC
"16p fair value" per share...
Current share price 1.25 pence.
Market cap GBP25 million.
Turnover last year GBP28.4 million.
Profit last year GBP3.8 million.
EPS 0.19 pence.
Turnover this year expected approximately US$45 million.
This company also owns 28% of ATOM, a listed green hydrogen and ammonia production company.
PPC
Pp. |
 https://masterinvestor.co.uk/equities/small-cap-round-up-pots-and-scans/FRP Advisory Group (LON:FRP) current economic environment is highly conducive to its businessOn Friday of next week, this business advisory group will be announcing its results for the year to end April 2022.And looking at the way the group's shares have been moving ahead recently, it seems that investors have been chasing the shares in anticipation of good news.With the way the economy appears to be kicking a number of the country's larger companies this group could well prove to be a major beneficiary of the current uncertainties.It offers amongst its multitude of services, debt advisory, corporate finance, mergers and acquisitions, restructuring, forensics and even pensions advisory.The market is looking for revenues for the last trading year to have risen 21% to £95.2m, upon which the group could have made some £23.3m (£21.2m) of pre-tax profits, lifting earnings to 7.8p (7.1p) and dividends up to 4.3p (4.1p) per share.For the current year analyst Peter Renton, at the group's brokers Cenkos Securities, is perhaps being too cautious in looking for only £100.0m in revenues, £24.0m profits, 8.0p earnings and a 4.7p dividend per share.He sees its net cash rising to £27.8m (£20.7m) by the March 2023 year end.Even so he rates the group's shares as a 'Buy' stating that the company has the appealing characteristic of being able to grow throughout economic cycles.The shares at the current 157.5p are 5p below their recent 162p peak, I feel that the group is really catching market attention now and they remain a very good hold. |
https://citywire.com/funds-insider/news/expert-view-restaurant-group-frp-advisory-tinybuild-and-xps-pensions/Marlborough: Downturn could boost FRP AdvisoryBusiness consultants FRP Advisory (FRP) could benefit from clients' restructuring and insolvency needs as tough economic times bite, say Marlborough fund managers Guy Field and Eustace Santa Barbara.The duo hold FRP in their £1.1bn Marlborough UK Micro-Cap Growth fund and in their latest update said it has been a significant contributor to performance in recent months.'The business advisory firm... rose following an encouraging full-year trading update, with revenue and profit expected to be ahead of market expectations,' they said.'Furthermore, the company could benefit from restructuring and insolvency initiatives on behalf of clients should the economic environment deteriorate.'The shares fell 3.9% to 161p on Tuesday, continuing to build on gains this year.More generally, the Marlborough pair said the prospect of 'structurally higher inflation' and the subsequent increase in interest rates are weighing on global growth forecasts. 'Nevertheless, we will continue to invest in companies that we believe can perform through the economic cycle,' they added. |
Riverman77 yes I totally agreed they are more into Mergers and Acquisitions.
I will just have to see how they preform on the results side.
I call all three the Vulture investments. Many small businesses are going to the wall.
High street sales will suffer because a lot of people started to use the internet during lock down.
They are fining shopping on the internet much easier now IMO.
ATB and thanks for your input. |
For K3C, worth pointing out that only 20% of earnings come from the recovery division (even though it accounts for around 50% of revenues). The rest is highly cyclical m&a. Therefore don't see them as a good play on this sector at all. |
Hi Sunshine Today. It took me a while to locate this BB thread.
Thank you for your input .
I know Geansey from another BB.
I hold all three shares in FRP,BEG and K3C. BEG is the best performer in my portfolio at the moment.
ATB. |
Riverman - FRP historically pre covid have traded around the 120’s so the rise to todays price is not that significant. For me the main differentiator is that BEG (property advisory) and K3 (M&A) both have a larger cyclical element. However i now hold all 3 so no debate from me!!! |
The beneficiaries at this stage of the cycle are BEG. Driven by the big increase in the small CVLs. That should knock through to MANO but there will be a shortish time lag. FRP are far more geared to the large size but much smaller number of administrations of the big companies (see the companies listed above for example). There is a lot of competition for that work. That is yet to occur but I have little doubt it will. K3C only have Quantuma and I am not convinced about them. The plays for me are: FRP, BEG and Mano (they cover the CVLs and the larger Administrations) in this space. All three top quality offerings and excellent management teams. DYOR as ever of course. |
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